Just Dial’s Performance Analyzed

Just Dial, a leading local search company in India, recently released its financial results for Q2 FY26 and the first half of the year. Despite a rise in sales, the company’s profits decreased. This signals potential challenges that need careful attention.

Key Points

• Revenue increased 6.4% to ₹303.07 crore, yet profit declined.
• Net profit fell 22.47% YoY to ₹119.44 crore due to lower earnings.
• EBITDA rose 6.1% to ₹87.1 crore, showing operational strength.
• EBITDA margin decreased slightly, reflecting increased costs or pricing pressure.
• Mobile traffic dominates, representing 87.3% of all visits and growing rapidly.
• Listing numbers increased substantially, indicating customer growth and engagement.

The company generated ₹303.07 billion in revenue, a 6.4% improvement compared to the previous year. However, this wasn’t enough to boost profits. This is primarily due to a 22.47% decrease in net profit, which came to ₹119.44 billion.

Operating earnings, measured as EBITDA, showed a positive trend, rising by 6.1% to ₹87.1 billion. This indicates that Just Dial is still effectively managing its core operations. The EBITDA margin, though, saw a small dip to 28.7%, highlighting potential pressures on profitability.

Traffic to the Just Dial platform continued to grow. A total of 197.7 million unique visitors used the platform during the quarter, a small decrease of 0.2% compared to the year before. The vast majority of this traffic came through mobile devices – 87.3% – and was growing rapidly at 2.1% year-on-year.

Just Dial’s listing database also expanded significantly. The company added 1.5 million new listings, bringing the total to 51.2 million, a 10.8% and 3.1% increase respectively. Crucially, 35.9 million of these listings were “geocoded,” meaning they had precise location information, representing a 16.4% jump.

Customers were actively reviewing businesses on the platform. There were 154.7 million ratings and reviews recorded, up 3.0% compared to the prior year. Furthermore, 623,970 paid advertising campaigns were running, a 4.3% increase, demonstrating continued marketing efforts.

Looking at the first half of the fiscal year, Just Dial’s net profit decreased by 5.48% to ₹279.09 billion, while revenue climbed 6.28% to ₹600.93 billion. This suggests a need to optimize costs and streamline operations to improve overall profitability.

“Just Dial’s growth story hinges on maintaining momentum in its key markets and driving sustainable profitability.”